The 1099 is a series of 17 forms for reporting income to the Internal Revenue Service. While wages paid to workers classified as employers are reported via Form W-2, some businesses must report money paid to contractors through a 1099 form.

1099-MISC

The 1099-MISC from is by the far the most frequently 1099 form used to report income. A business is required to report using the 1099-MISC when it has paid an individual who is not an employee at least $600 for services, not goods, in a given tax year. A business must also report over $600 paid for services to an unincorporated business. In most cases, services paid to corporations for services are not reported via the 1099-MISC. Businesses must also use the 1099-MISC to report less common payments such as over $10 of royalties or broker payments, any proceeds paid to fishing boats, or more than $600 paid to an attorney.

Other 1099 Forms

Although used less frequently, 16 other 1099 forms must be used to report income paid in certain circumstances. According to the National Federation of Independent Businesses, those most often used by small businesses include the 1099-C, 1099-DIV, 1099-INT and 1099-S. Money paid as a result of the cancellation of a debt is reported via the 1099-C. The 1099-DIV is used to report money paid in the form of dividends, the 1099-INT is used to report money paid in the form of interest, and the 1099-S is used to report money paid as the result of a real estate transaction.